Polkadot, the open source blockchain platform, has announced the launch of the first parahains (or parallelized chains) aimed at improving interoperability across multiple blockchains.
The Polkadot team has invested over five years in the development of parachains allocated to teams through auctions – Acala, Moonbeam, Parallel Finance, Primer and Clover.
With individual blockchains running in parallel across the Polkadot ecosystem, auction winners will be able to rent slots on Polkadot's Transition Chain for up to 96 weeks at a time. Polkadot Founder and Ethereum co-founder Gavin Wood says that the developed Relay Chain will help coordinate consensus and communication between parachains.
“And as the ecosystem grows, especially with the emergence of metaverses, dozens of protocols will become increasingly visible. In this scenario, we will not have a single blockchain, but several interconnected chains.”
Polkadot (DOT) has been among the top 10 cryptocurrencies by market cap for over 5 years. The ecosystem plans to expand the current slot allocation of 5 to 100 parachain slots, which is the maximum capacity for Relay Chain.
However, the announcement states that "Not all of these slots will be allocated via parachain slot auctions, as some will be used for governance-enabled common good parachains and parathreads."
According to Wood:
“The Parachain model was created with the belief that the future of Web3 will involve many different blockchains working together. Just as the current version of the internet caters to different needs, blockchains need to be able to offer a variety of services. Parachains solve this”
To accelerate smart contract initiatives across decentralized finance (DeFi) and immutable tokens (NFTs), Iota recently announced the launch of a decentralized layer-a smart contract network called Assembly.